It is common for California technology companies to offer employees stock options, such as restricted stock units, as incentives for excelling at their jobs, job loyalty and work well done. While these types of stock options do not have the initial dollar value of direct compensation, their value fluctuates with the company’s success and the market.
When married employees of these companies seek a divorce, many questions arise as to whether these stock options are marital property and, if so, how these stock options should be divided between the spouses. At Moradi Saslaw, we understand the importance of stock options and restricted stock units to both employees and their spouses when valuing and dividing assets in a marital estate.
While asset division in any divorce has the potential to be complicated and stressful, those divorces with complex assets can be incredibly taxing. At Moradi Saslaw, our highly skilled complex asset family law attorneys make it a priority to do the following and more on your behalf:
Accurately determine the value of your equity compensation, both currently and its future potential
Determine the vesting and distribution schedule of your equity compensation
Determine the portion of equity compensation that is separate property apart from community property
Knowledgeable in analysis and division of stock options, RSUs, and limited partnership interests
Adept at working with forensic accountants to effectively support our clients.
In a California divorce, fair and accurate valuation of complex assets, such as equity compensation, is essential. Couples must provide a detailed asset inventory, and assets without an immediate value must undergo a valuation process. Equity compensation, with its complicated vesting and distribution schedules, requires specialized accounting practices. An experienced start-up and equity compensation law firm is crucial for accurately calculating these assets’ worth.
Equity compensation grants employees stock upon meeting certain conditions. Once these conditions are met, the employee receives taxable stock based on its fair market value, which fluctuates with the company’s performance. The vesting and distribution schedule is crucial as it determines when and how much equity the employee receives.
California is a community property state, meaning assets acquired after marriage are divided equally between spouses. The vesting and distribution schedule of equity compensation is critical in determining property status. Stock vested and distributed before marriage is separate property, while stock vested and distributed after marriage is considered community property and subject to division under California law.
We are a full-service family law firm with experience litigating and negotiating complex divorces and domestic partnership dissolutions in California since 2009.
Whether it’s a simple asset division, a basic custody agreement, or more intricate matters like dividing stock options, limited partnership interests, or a contested custody dispute, we develop creative strategies to meet every goal. Our premier divorce lawyers have a strong record of courtroom success and negotiated settlements.
Regardless of how you or your spouse received equity compensation, Moradi Saslaw is available to conduct a detailed analysis of this complex asset to determine if it is subject to marital property division laws. We will also review any other assets, including real property, to provide you with an accurate picture of your divorce standing. For family law attorneys who will fight to preserve all of your assets and protect your best interests, call us at (415) 625-4587 or fill out our contact form to schedule a consultation with one of our experienced family law attorneys.
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We are a full-service family law firm with experience litigating and negotiating complex divorces and domestic partnership dissolutions in California.
"*" indicates required fields